Posted on: 18th Apr, 2009 05:29 pm
i am closing the estate of a person who financed a mortgage on some property in maine. am i right to think that it is allowable for me to call in the mortgage, which still has about another four years? the lawyer is telling me he doesn't think i can, which will just be a big headache if i have to keep the estate open for four or five more years. my feeling is that the person who owes the money should refinance through a bank (they will have land equity, as they are inheriting a great lump of property beside the house they bought) and that i shouldn't do any favors by continuing on for five more years, aside from the fact that most of the inheritors of the estate are quite elderly and may not live long enough to get all the money from the estate that they are supposed to get.
the lawyer is trying to tell me that we don't have the right to call in the mortgage but i am not sure that he is correct.
the lawyer is trying to tell me that we don't have the right to call in the mortgage but i am not sure that he is correct.
Beth,
The note is a contract. It does not matter whether it is owner financed or seller financed. If the details of the note indicate that it is a 30 yr fixed for example, then the terms of that note transfer to whoever inherits that note.
In similar fashion, when you get a mortgage from a bank and they sell your loan, the new bank must accept the original terms of that loan.
In summary, the lawyer is correct.
The note is a contract. It does not matter whether it is owner financed or seller financed. If the details of the note indicate that it is a 30 yr fixed for example, then the terms of that note transfer to whoever inherits that note.
In similar fashion, when you get a mortgage from a bank and they sell your loan, the new bank must accept the original terms of that loan.
In summary, the lawyer is correct.
Thank you, Sam
